Majedi announced on Sunday June 19 that Iran has paid off its €500m ($569 million) debt to Hermes, a German government arrangement that protects German companies if foreign debtors fail to pay.

He added that the payment has removed obstacles in the way of Tehran-Berlin business ties and that the two countries’ banks can now boost their cooperation.

Earlier, Michael Kemmer, the head of the German banking association said, “Rebuilding ties with Iran requires patience.”

“To begin with, the transactions regimen has to work again before the next step of financing projects can take place,” he added.

Elsewhere in his remarks, Kemmer referred to Tehran’s Hermes debt to Berlin and said banking ties between the two countries will revive only after Iran pays its debt to Germany.

One of the main reasons that the Islamic Republic, despite a lasting nuclear deal between Tehran and world powers, had not been able to repay its debts to the German firm was due to difficulties in working with foreign banks.